Short-read Sequencing Market Size, Share & Trends Analysis Report By Product (Instruments, Consumables), By Workflow, By Application, By End-Use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global short-read sequencing market size was valued at USD 5,341.3 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 18.46% from 2023 to 2030. Increasing demand for personalized medicine and companion diagnostics is anticipated to boost the industry growth. Short reads are generated massively in a single run and the technology is easy to use and inexpensive. These advantages are projected to further fuel growth. Moreover, the COVID-19 pandemic involved increased exposure to the new strains of the SARS-CoV-2 virus which displayed a high level of contagiousness and resistance to drugs and treatment. Early detection of the virus variant lineage was essential to treat the viral infection and improve public health prospects. Although the market was negatively affected in 2020 due to the lockdown strictures, genome sequencing methods witnessed robust demand for virus characterization and this had a positive impact on the global short-read sequencing industry in 2021. In addition, the pandemic led to increased awareness about short-read techniques, which coupled with the development of cost-effective genome sequencing approaches is expected to boost the market revenue.

The increase in demand and usage of cancer therapeutics has significantly enhanced the adoption of short-read technologies for companion diagnostics. Short-read sequencing is a rapid method for the detection of genetic abnormalities. It is useful in the diagnosis of genetic deformities. Moreover, the high throughput nature of the short-reads enables the sequencing of millions of genome fragments simultaneously in each run, which is projected to drive the adoption of short-read sequencing-based approaches. These methods are also considered to be an ideal choice for targeted therapies and precision medicine due to the competence of short-read platforms to measure different biomarkers and map genomic sequences in a single test.

Strategic initiatives undertaken by key market players are expected to boost the market in the near future. For instance, in June 2022, Element Biosciences launched its AVITI 150-Cycle Sequencing Kit, designed for short-read sequencing applications including single-cell RNA-seq, and bulk RNA-seq, among others.

The increase in the demand for drug discovery and development for chronic illnesses such as cancer boosts the demand for short-read technologies. Similarly, a rise in the R&D for genomic research drives the market. Moreover, increasing adoption of short-read techniques due to their cost-effectiveness and short run times boosts the global market. For instance, in October 2022, Illumina, Inc. launched the NovaSeq X sequencing system for genomic and clinical discoveries generating 20000+ genomes per year. The cost of the machine was reduced to USD 200.

Product Insights

The Consumables segment held the major share of 62.65% of the short-read sequencing industry in 2022. Consumables such as pipettes, tips, and assay kits have a wide range of applications in short-read procedures which drives the market. The largest market share can be attributed to the high R&D investments for genomic research and the increasing demand for high-quality short-read compatible consumables in academic research and biopharmaceutical research and development areas. These factors are expected to fuel the segment over the forecast period.

The services segment is expected to become the fastest-growing segment in the short-read sequencing industry by 2030. It is expected to grow at a CAGR of 21.96% between 2023 and 2030. Key players provide a wide range of next-generation based short-read sequencing services which boost the R&D portfolio. For instance, in April 2022, Day Zero Diagnostics, Inc. launched lab services for whole genome sequencing-based services for genomic clinical assays for infectious disease diagnosis. In addition to this, GENEWIZ also provides custom short-read amplicon sequence analysis using Illumina, Inc. platforms for antibody profiling, genome editing, mutation analysis, and other applications.

Workflow Insights

The sequencing segment accounted for the largest market share of 56.64% in the workflow segment in 2022. The high penetration of the market participants in this step of the workflow adds to the revenue generated from the step. High competition in the market has led to the launch of novel and portable platforms that can be easily used to sequence DNA. These platforms include MiSeq, iSeq, MiniSeq, and NovaSeq, series from Illumina and IonS5, Ion Proton, and PGM from Thermo Fisher Scientific. For instance, in March 2022, Thermo Fisher Scientific, Inc. launched an automated NGS-sequencing Ion Torrent Genexus Dx Integrated Sequencer for rapid clinical diagnostics oncology research. Such initiatives are boosting segment growth.

Data Analysis is projected to be the fastest-growing segment in the short-read sequencing industry and is expected to grow at a CAGR of 20.49% between 2023 and 2030. Data analysis enables gene expression analysis which can be used to study disease progression and diagnosis. It has prime importance in clinical research studies. For instance, in January 2023, QIAGEN Digital Insights launched the NGS data analysis platform for conducting whole genome analysis for clinical research studies in 25 minutes. Such product launches can significantly boost segment growth in the coming years.

End-Use Insights

The academic & research institutes segment accounted for the largest market share of 48.67% in 2022 due to the increase in the research infrastructure and a surge in the development of healthcare facilities which drive the segment to dominate the end-use segment. For instance, in August 2022, Icahn School of medicine, Mount Sinai Health System, and Regeneron Genetic Centre launched human genome sequencing research project for the study of precision medicine approaches, to improve patient care, and to develop gene therapies for the treatment of the infectious diseases. In addition, large-scale cancer & genomics research activities are conducted by academic institutions and universities in North America. These activities have accelerated biotechnology-based research, thereby increasing the demand for high-throughput solutions in laboratory techniques.

The pharmaceutical & biotechnology companies segment is expected to be the fastest-growing segment by 2030. Over the recent years, research and development efforts for advanced therapies, in vitro diagnostics, and drug discovery has increased the demand for short-read technologies. The increasing funding by the pharmaceutical & biotechnology companies to enhance the proteomics, genomics, and biotechnology research portfolio is expected to drive the segment in the upcoming years.

Application Insights

The targeted sequencing & resequencing segment had the largest market share of 68.21% in 2022. Advanced platforms have enhanced the efficacy of short-read sequencing of cancer-associated genes from multiple genome sets. This allows medical specialists to understand the genetic makeup of tumor cells and advice therapeutics accordingly. For instance, in October 2022, PacBio announced the launch of beta testing the Onso system, a short-read DNA sequencing platform. The system has been designed to provide accurate data and cost-effective operations. The short-read platform was launched to offer sensitive and specific targeted sequence analysis insights for oncology research.

The whole genome sequencing segment is expected to grow at a rapid pace during the 2023-2030 period as various government and non-government institutions are adopting the technique for the detection of rare & rare diseases in newborns and young children. This application of short-read sequencing is also gaining traction for the identification of treatable genetic disorders to avoid disability and further complications. For instance, in December 2022, the U.K. government announced the Newborn Genomes Program which aims at using whole genome sequencing analysis for the detection of rare diseases in newborn individuals.

Regional Insights

North America accounted for the largest share of the short-read sequencing industry in 2022 and accounted for around 49.77% of the market size. The presence of major companies increased government funding, and an increase in research activities in the region is contributing to its growth of short-read techniques. The region is expected to witness significant growth over the forecast period owing to the presence of a regulatory environment that can support the development of genomics. Furthermore, the substantial extent of government support in the region is the key factor contributing to the estimated revenue share.

Asia Pacific is estimated to grow at the fastest rate during the forecast period. This can be attributed to the increasing research activities in the region and the rising interest of key global players in increasing their regional revenues by expanding into emerging markets in the Asia Pacific region. Similarly, regional players are strengthening their presence in the global short-read sequencing industry. Developing countries are exhibiting higher growth in terms of capacity expansion compared to major western markets.

Key Companies & Market Share Insights

The high demand for short-read sequencing for multiple applications has led to numerous market opportunities for major players to capitalize on. Key players are involved in strategic initiatives such as mergers, acquisitions, and collaborations to maximize their market share. For instance, in March 2023, QIAGEN launched its QIAseq Platform Partnership program and collaborated with SOPHiA GENETICS to drive advancements in somatic variant detection. Some prominent players in the global short-read sequencing market include:

• Illumina, Inc.

• Thermo Fisher Scientific, Inc.

• Pacific Biosciences of California, Inc.

• BGI

• QIAGEN

• Agilent Technologies

• Psomagen

• Azenta US, Inc. (GENEWIZ)

• PerkinElmer, Inc.

• ProPhase Labs, Inc. (Nebula Genomics)

Short-Read Sequencing Market Report Scope

Global Short-Read Sequencing Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this report, Grand View Research has segmented the global short-read sequencing market report based on product, workflow, application, end-use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Instruments

  • Consumables

  • Services

• Workflow Outlook (Revenue, USD Million, 2018 - 2030)

  • Pre-Sequencing

  • Sequencing

  • Data Analysis

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Whole Genome Sequencing

  • Whole Exome Sequencing

  • Targeted Sequencing & Resequencing

    • DNA-based

    • RNA-based

  • Others

• End-Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Academic & Research Institutes

  • Hospitals & Clinics

  • Pharmaceutical & Biotechnology Companies

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

  • U.S.

  • Canada

  • Europe

  • U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Sweden

  • Norway

  • Asia Pacific

  • Japan

  • China

  • India

  • South Korea

  • Australia

  • Thailand

  • Latin America

  • Brazil

  • Mexico

  • Argentina

  • Middle East & Africa

  • South Africa

  • Saudi Arabia

  • UAE

  • Kuwait